Champion announces first iron ore rail shipments from Bloom Lake Phase II expansion

Champion Iron (ASX: CIA) has announced the completion of its first rail shipments containing 24,304 wet metric tonnes of high-grade 66.2% Fe iron ore from the Phase II expansion project at its Bloom Lake Mine in Quebec, Canada.

The company reports that commissioning of Phase II has run ahead of schedule, with work now underway to gradually increase capacity at both the mine and plant, which is expected for completion by the end of 2022.

Addressing the update, Champion Iron CEO David Cataford said: “Today we celebrate the culmination of our collective efforts as the Phase 2 expansion project comes to life. The phase 2 project is expected to be in operation for decades and will provide the Quebec Cote-Nord region with over 400 additional permanent high-quality jobs.

The phase 2 project is expected to be in operation for decades and will provide the Quebec Cote-Nord region with over 400 additional permanent high-quality jobs”

Completing the project ahead of schedule, while facing the challenges imposed by the COVID-19 pandemic, is a testament to the agility and operational excellence of our employees and partners. With our high-purity iron-ore products contributing towards emission reductions in the global steel industry, I am excited by the potential of the several organic growth projects we are currently evaluating.” 

The Company notes that based on positive findings from the project’s Feasibility Study, it has been able to secure an increase in credit facilities from US$200 million to US$400 million, allowing full finance of the project without additional equity raising.

In addition, the Feasibility Study proposed the doubling of the nameplate capacity at Bloom Lake to 15Mtpa, while the Phase 2 expansion project has a target recovery of 82.4%.

The Bloom Lake Mine is located approximately 13km north of Fermont, Quebec, and 10km north of ArcelorMittal’s Mont Wright iron ore mining complex.

Prior to its recommissioning in February 2018, the mineral reserves recorded during Phase 1 were reported at 411.7 million tonnes, containing an average content of 30% Fe. Phase 2 expansion is estimated at 807 million tonnes, with an average content of 29% Fe.

Images: Champion Iron Limited
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.